Decision disappoints

Press, 1 June 1985, Page 21

Decision disappoints

The group managing director of Goodmans, Mr Peter Shirtcliffe, said he was disappointed at the commission’s decision. Asked if he agreed with the commission’s comment that the public interest was best served by having two operators in the principal tourist air routes, he said Goodman had never suggested there should be other than two operators. “Obviously, for the maintenance of commercial integrity, there must be two operators — Mount Cook and Newmans,” he said.

He did not believe that the holding by Goodman of a large shareholding in Newmans and Mount Cook would jeopardise that commercial integrity. “However, the commission obviously believes it would,” he said. The Goodman board had had some months to consider various options open to it and would decide on its next move in the next few days. A spokesman for Mount Cook said yesterday that the company’s directors believed it improper for them to comment.

A spokesman for the Commerce Commission said yesterday that Goodman would be able to on-sell- the shares to whoever the company chose. If the buyer wanted more than 20 per cent of Mount Cook’s shares (and the total package involved accounted for 27 per cent), and the total of the buyer’s capital and Mount Cook’s was more than S2OM, the buyer would need approval under the Commerce Act. If the 27 per cent package was bought by two separate buyers in less than 20 per cent lots, permission would not be needed.